Share price premium enticed Plan B/IOOF sale
A purchase offer at a considerable premium to current share price value largely incentivised the Plan B board to accept a purchase offer from IOOF.
IOOF's all-cash offer of $0.60 per share (for a total sale price of $49.1 million) represents a 33 per cent premium on the $0.45 value at the time of the 12 July offer, Plan B said in a statement to the Australian Securities Exchange on Friday.
The release suggested Plan B share prices had been trending downward, with a three-month weighted average share price of $0.528 down to a one-month weighted average of $0.48 to the most recent $0.45 valuation.
Plan B said the offer represents the best available value realisation opportunity for shareholders and the board unanimously recommended the offer. The board also said the offer would link Plan B to a stronger financial base, allowing it to realise its strategic plan sooner and strengthen its distribution capabilities.
IOOF said the move would add $2.2 billion to IOOF's funds under administration via Plan B's internally managed platform and increase IOOF's number of aligned advisers.
IOOF also anticipated the move would help it access the New Zealand retirement savings market through Plan B's footprint there, and to grow its reach in the adviser space in Western Australia and Queensland.
The offer remains subject to a bid implementation deed and certain conditions, including that IOOF take a minimum ownership stake of 90 per cent.
Plan B is expected to lodge the bidder's statement with the Australian Securities and Investments Commission around 26 July and despatch it to shareholders around 9 August, with the offer to close around 11 September 2012.
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